A Subsidiary Of Elbit Imaging Has Signed A Non-Binding Letter Of Intent With An International Investment Fund To Sell Its Shareholdings In The Radisson Complex In Bucharest, Romania
TEL AVIV, ISRAEL / ACCESSWIRE / August 18, 2017 / Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) ("Elbit" or the "Company") announced today, that a Company's wholly owned indirect subsidiary ("Seller") has signed a non-binding letter of intent ("LOI") with an international investment fund (the "Purchaser") to sell its entire shareholding (approximately 98.2%) in a company owning the Radisson Complex in Bucharest, Romania ("Target Shares"), based on a Property Value of approximately Euro 177.5 million (the "Transaction").
The consummation of the Transaction, which expected to occur within three to four months from the signing of the LOI, is subject to the fulfillment of certain conditions, including inter alia: (i) the successful conclusion by the Purchaser of its due diligence investigations; (ii) the signing of a binding share purchase agreement ("SPA"); and (iii) the fulfillment of certain conditions precedent as will be finally determined in the SPA, including obtaining the approval of the Romanian Competition Council, and the obtaining of externally sourced financing by the Purchaser.
The net proceed to the Company will be calculated following the repayment of the secured bank loan, customary working capital adjustments and other agreed adjustments as of the closing date.
During the period starting on the date of the signing of the LOI and terminating on the earlier to occur of the date of the execution of the SPA, or the date of the termination of the LOI by either party (the "Exclusivity Period"), the Seller and its representatives have undertaken to refrain from negotiating with any other third party other than the Purchaser for the purpose of selling the Target Shares or the Radisson Complex.
As of the date hereof, there can be no certainty that the SPA will be signed and/or that the Transaction will be consummated.
About the Radisson Complex
The Radisson Complex is located in the heart of Bucharest, Romania with 763 rooms. The Complex includes the Radisson Blu hotel which is the leading five stars hotel in Romania, with a capacity of 487 rooms, the newly renovated four star Park Inn Hotel with a capacity of 276 rooms and 7,200 sqm of commercial area that includes the biggest Casino in Bucharest, a fitness center and fashion shops.
The Radisson Blu hotel and the Park Inn hotel are managed by Rezidor, which is part of Carlson Rezidor Hotel Group.
About Elbit Imaging Ltd.
